AMCON not aware of fraud in Capital Oil

January 22, 2012

The Asset Management Corporation of Nigeria (AMCON) at the weekend said it was not aware on any kerosene fraud in Capital Oil’s operations.

An online media had reported that “the Federal Government through the AMCON has given Capital Oil owned by Ifeanyi Uba, 60 days to pay back N5billion being rogue proceeds he made from Kerosene subsidy or risk arrest and prosecution.”

It had also stated that that Nigeria National Petroleum Corporation (NNPC) allocated to Uba’s Capital Oil 75 per cent of kerosene supplies to distribute to the entire country at N50 pump price and that the company illegally made over N60 billion from payments from kerosene subsidy.

But in a statement made available to newsmen in Lagos , AMCON said: “Nobody in the Federal Government of Nigeria (FGN) has approached AMCON in regard to any subsidy fraud relating to Capital Oil or indeed any other person or companies.”

The Corporation however, acknowledged that it has acquired some loans from various banks relating to Capital Oil and Gas.

The statement reads in part:” We have read with dismay the various stories relating to AMCON and Mr. Ifeanyi Uba, Chairman of Capital Oil and Gas Company of Nigeria .

“AMCON wishes to state that it has indeed acquired some loans from various banks relating to Capital Oil and Gas.

“The Corporation, pursuant to its normal processes is in confidential discussions with Mr. Ifeanyi Uba relating to Capital Oil’s obligations, the purpose of which is to ensure settlement terms acceptable to both parties.

“AMCON is not aware of any Fraud – Kerosine or otherwise in relation to Capital Oil’s operations.

“Nobody in the Federal Government of Nigeria (FGN) has approached AMCON in regard to any subsidy fraud relating to Capital Oil or indeed any other person or companies.

‘Finally, we wish to reiterate that AMCON’s role is limited strictly to enforcement of debt obligations through professional restructuring and appropriate legal channels.”

AMCON has also invested N3.14 trillion ($19.6billion) so far in the purchase of non-performing loans and recapitalisation of banks. With the bad debts taken over by the corporation, it now has assets spread across the country including real estate properties and shares that were used as collateral for loans. AMCON also has shares in nearly all the banks in the country and several quoted companies.